AGENDA CAPTION:
Title
Discuss and consider appointments to Positions One, Two and Three and confirm appointments of Positions Four and Five, and appoint a Chair to the Tax Increment Reinvestment Zone (TIRZ) Number 3 - San Marcos Convention Center Board of Directors, and provide direction to Staff.
Body
Meeting date: June 3, 2025
Department: City Clerk’s Office
Amount & Source of Funding
Funds Required: N/A
Account Number: N/A
Funds Available: N/A
Account Name: N/A
Fiscal Note:
Prior Council Action: City Council created the TIRZ with the adoption of Ordinance 2006-08 on March 21, 2006.
City Council Strategic Initiative: [Please select from the dropdown menu below]
Economic Vitality
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Comprehensive Plan Element (s): [Please select the Plan element(s) and Goal # from dropdown menu below]
☒ Economic Development - Fiscally Responsible Incentives for Economic Development
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☐ Core Services
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Background Information:
TIRZ Number 3 was established to finance the construction costs of a conference center within the Zone. The debt incurred for this construction has been repaid using three primary sources: 1) TIRZ #3, 2) a voter-approved 2% venue tax on hotel stays, and 2) an annual contribution from the developer to cover a portion of the costs.
As a result of these funding sources, a fund balance has accumulated, enabling the City to defease all but two years of the outstanding conference center debt. A bond defeasance involves setting aside sufficient funds in escrow to cover future principal and interest payments, legally removing the debt obligation from the City. The 2% venue tax generates enough revenue to cover the remaining two years of debt service payments, which will allow for the closure of TIRZ #3.
According to Section 4 of Ordinance 2006-08, the termination of the Zone is set for December 31, 2035, unless a subsequent ordinance designates an earlier date. Any proposed changes to the Zone must be approved by the Board of Directors, and a public hearing is required before the City Council can consider these changes. There has been no reason for the Board to meet, so the members need to be appointed first.
Below is an excerpt from Ordinance 2006-08, which established the Board of Directors. Hays County has indicated that Judge Ruben Becerra and Debbie Ingalsbe, the Precinct 1 Hays County Commissioner, will serve as the County’s representatives for Positions Four and Five.
Section 3. Board of Directors.
(a) A Board of Directors is created for the Zone, which will consist of five members. Positions One through Three on the Board of Directors will be reserved for the City. Positions Four and Five will be reserved for other taxing units levying property taxes within the Zone, each of which may appoint one director if the unit has not waived its right to do so.
(c) The directors appointed to odd-numbered positions shall be appointed for two-year terms,
beginning on the effective date of this Ordinance, while the directors appointed to even- numbered positions shall be appointed to a one-year term, beginning on the effective date of this Ordinance. All subsequent appointments shall be for two- year terms. The member of the Board of Directors appointed to Position One is hereby designated to serve as the chair of the Board of Directors for a one-year term beginning on the effective date of this Ordinance.
TIRZ #3 Board - San Marcos Conference Center
• Position #1 - Chair and 1 year term (COSM)
• Position #2 - 1 year term (COSM)
• Position #3 - 2 year term (COSM)
• Position #4 - Judge Ruben Beccera - 1 year term (Hays County)
• Position #5 - Debbie G. Ingalsbe, Precinct 1 Hays County Commissioner - 2 year term
Council Committee, Board/Commission Action:
N/A
Alternatives:
N/A
Recommendation:
City Council appoint Positions One, Two, and Three and confirm appointments of Positions Four and Five and appoint a Chair to the TIRZ Number 3 - San Marcos Convention Center Board of Directors.